Altcoins
Solana and Bitcoin lead as crypto funds see 4th week of inflows
Last updated: October 25, 2023 at 3:40 p.m. EDT | 2 minutes of reading
According to a recent CoinShares report released on Monday, crypto funds posted a net entry for the fourth consecutive week, totaling $179 million. While Bitcoin products have captured the largest share of the inflow, Solana is a leader in altcoin investmentscreating dynamic change in digital asset flows.
Bitcoin and Solana lead the charge
CoinShares Digital Asset Fund Flows Report revealed that last week’s entries included $55.3 million allocated to Bitcoin, constituting around 84% of total new investments. These figures bring the total Bitcoin product inflows in the year to date. $315 million.
Solana has also attracted considerable attention from investors. Last week, the cryptocurrency platform received an additional $15.5 millionwhich brings his total for the year to $74 million. Among all altcoins, Solana now claims the title of most favorite altcoin by investors this year.
Ethereum loses ground amid inflows
As Bitcoin and Solana see an influx of investments, Ethereum faces a contrasting trend. CoinShares reported that Ethereum was the only a major altcoin will witness a sharp outflowamounting to $7.4 million last week. This decrease brings Ethereum’s total assets under management to $6.7 billion.
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– Sesh (@TheRavenSkies) October 23, 2023
“Ongoing concerns over Ethereum led to additional outflows of $7.4 million, the only altcoin to see outflows last week,” the report said.
The ETF Factor in Digital Asset Flows
Head of Research at CoinShares James Butterfill noted that current inflows, while promising, have not matched the peaks observed after BlackRock announced its spot Bitcoin ETF application in June.
“While the most recent inflows are likely related to excitement over the one-time launch of a Bitcoin ETF in the United States, they are relatively small compared to initial inflows following BlackRock’s June announcement,” Butterfill said.
The market was optimistic about the spot Bitcoin ETF, which further boosted inflows of digital assets. Positive reactions were noted when the news broke Potential developments for the iShares Bitcoin Trust proposed by BlackRock.
In addition, Grayscale’s Recent Legal Victories boosted market sentiment, after a mandate from the U.S. Court of Appeals for the D.C. Circuit for the SEC to review Grayscale’s ETF application.
In short, four consecutive weeks of net inflows into crypto funds reveal sustained investor interest in digital assets. Although Bitcoin remains the most dominant, Solana’s growing prominence suggests a possible shift in investor preferences among altcoins. Ethereum outflows, however, could signal growing investor caution, possibly linked to scalability or fee issues. As the possibilities of spot Bitcoin ETFs continue to influence the market, digital asset inflow patterns offer valuable insights into changes in investor sentiment and strategy.